Wall Street drops on Italian election uncertainty

NEW YORK (Reuters) - Stocks fell on Monday, reversing course from earlier gains as elections in Italy stoked concerns a divided parliament could disrupt the country's fiscal reforms and the euro zone's stability.


Early forecasts of the results were conflicting, as opinion polls indicated the center-left of Pier Luigi Bersani winning the lower house, but projections from RAI state television showed Silvio Berlusconi's center right in front in the Senate - which has equal lawmaking power - but unable to form a majority.


The resulting gridlock in parliament could force new elections and sent the euro currency lower against both the dollar and yen.


"Most likely we are looking at a second election, so it's delayed, but at the margin it is a negative," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.


"The question is, what happens with Italy and that uncertainty is out there, that is really what you've seen in the sell-off here."


Earlier polls pointing to a center-left victory boosted stocks in Milan and other European markets, as well as helping to lift the S&P 500 to a session high of 1,525.84 on optimism Italy would continue to pay down its debt.


However, the benchmark S&P index remained near highs not seen in five years, as bets on a stronger U.S. economy have given equities support. The S&P 500's slight fall last week was the first weekly drop after a seven-week string of gains to start the year.


Banks and other financial stocks were among the worst performers on worries about the sector's exposure to Italy's massive debt. The KBW Bank Index <.bkx> fell 1.1 percent.


The Dow Jones industrial average <.dji> dropped 92.14 points, or 0.66 percent, to 13,908.43. The Standard & Poor's 500 Index <.spx> dropped 11.65 points, or 0.77 percent, to 1,503.95. The Nasdaq Composite Index <.ixic> dropped 12.65 points, or 0.40 percent, to 3,149.17.


Barnes & Noble Inc shares jumped 10.6 percent to $14.94 after the bookseller's chairman offered to buy its declining retail business.


The Nasdaq received support from Amgen Inc , up 4.9 percent at $91.03, after rival Affymax issued a voluntary recall of its only drug, an anemia treatment that competes with Amgen's top-selling red blood cell booster, Epogen. Affymax shares slumped 84.6 percent to $2.55.


The FTSEurofirst-300 index of top European shares <.fteu3> unofficially closed up 0.04 percent and Italy's main FTSE MIB <.ftmib> ended up 0.7 percent after earlier gaining near 4 percent.


U.S. equities will face a test with the looming debate over so-called sequestration, U.S. government budget cuts that will take effect starting on Friday if lawmakers fail to reach an agreement over spending and taxes. The White House issued warnings about the harm the cuts are likely to inflict on the economy if enacted.


"Sitting out there is the one thousand pound gorilla - the sequester issue - and certainly nothing is happening there," Ghriskey said.


Lowe's Companies Inc lost 1.6 percent to $37.08 after the home improvement retailer posted fourth-quarter earnings.


With 83 percent of the S&P 500 companies having reported results so far, 69 percent beat profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


(Editing by Kenneth Barry, Jan Paschal and Nick Zieminski)



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Independent Spirit Award Winners 2013

The 2013 Film Independent Spirits Awards were handed out in Santa Monica, CA today and lots of Oscar frontrunners cemented their status by dominating in their categories once more.

Check out all the winners below:


Best Feature


Beasts of the Southern Wild

Bernie

Keep the Lights On

Moonrise Kingdom

Silver Linings Playbook


BEST FEMALE LEAD


Linda Cardellini, Return

Emayatzy Corinealdi, Middle of Nowhere

Jennifer Lawrence, Silver Linings Playbook


Quvenzhane Wallis, Beasts of the Southern Wild

Mary Elizabeth Winstead, Smashed


BEST MALE LEAD


Jack Black, Bernie

Bradley Cooper, Silver Linings Playbook

John Hawkes, The Sessions


Thure Lindhardt, Keep the Lights On

Matthew McConaughey, Killer Joe

Wendell Pierce, Four


BEST SUPPORTING FEMALE


Rosemarie DeWitt, Your Sister's Sister

Ann Dowd, Compliance

Helen Hunt, The Sessions


Brit Marling, Sound of My Voice

Lorraine Toussaint, Middle of Nowhere


BEST SUPPORTING MALE


Matthew McConaughey, Magic Mike


David Oyelowo, Middle of Nowhere

Michael Pena, End of Watch

Sam Rockwell, Seven Psychopaths

Bruce Willis, Moonrise Kingdom


BEST DIRECTOR


Wes Anderson, Moonrise Kingdom

Julia Loktev, The Loneliest Planet

David O. Russell, Silver Linings Playbook


Ira Sachs, Keep the Lights On

Benh Zeitlin, Beasts of the Southern Wild


BEST SCREENPLAY


Wes Anderson & Roman Coppola, Moonrise Kingdom

Zoe Kazan, Ruby Sparks

Martin McDonagh, Seven Psychopaths

David O. Russell, Silver Linings Playbook


Ira Sachs, Keep the Lights On

For the full list of winners, click here.

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Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.


Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.


Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.


"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.


Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.


But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.


National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.


"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.


OPTIONS BULLS TARGET GAINS


The spending cuts, if they go ahead, could hit the defense industry particularly hard.


Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.


Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.


"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.


The stock ended up 0.6 percent at $88.12 on Friday.


If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.


General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.


EYES ON GDP DATA, APPLE


The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.


U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.


Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.


Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.


On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.


(Additional reporting by Doris Frankel; Editing by Kenneth Barry)



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Egypt parliament election start moved to April 22

Katherine Webb, girlfriend of Alabama quarterback A.J. McCarron, made headlines when she was spotted by ESPN's Brent Musberger at the National Championship game earlier this year.Now, the 23-year-old model - recently featured in the pages of the annual Sports Illustrated Swimsuit Edition and a castmember on ABC's upcoming reality diving show, "Splash" -- explains how she's handling her sudden fame.
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Buzzmakers: Prince Michael Reports for ET and Mindy McCready Dies

What had ETOnline readers buzzing this week?

1. Prince Michael Jackson is New ET Correspondent

Having grown up in show business, Prince Michael proved to be a gifted interviewer as he conducted his first sit-down as an ET correspondent.

Michael Jackson's 16-year-old son impressed Oz the Great and Powerful stars James Franco and Zach Braff as well as director Sam Raimi with his confidence and competence on his first assignment.

"You're doing awesome," Braff gushed. "You're a natural."

Prince Michael returned the compliment, praising their work in the fantasy flick and getting Franco to shed some light on how he approached playing the lead role of Oscar Diggs, a small-time circus magician with dubious ethics.

"I saw that his particular transformation would allow for comedy," Franco explained. "Because he's a conman -- that would get him into a lot of awkward situations that could be played for comedy."

The movie imagines the origins of L. Frank Baum's beloved character from The Wizard of Oz. After Oscar Diggs (Franco) is hurled away from dusty Kansas to the vibrant Land of Oz, he first thinks he's hit the jackpot -- until he meets three witches, Theodora (Mila Kunis), Evanora (Rachel Weisz) and Glinda (Michelle Williams), who are not convinced he is the great wizard everyone's been expecting.

2. Country Music Stars Mourn Mindy McCready's Death

The country music community is mourning the loss of one of their own. Country crooner Mindy McCready was found dead of apparent suicide on Sunday, Feb. 17, at her Arkansas home. She was 37. Needless to say, this has caused an outpouring of sympathetic tweets from McCready's musician peers.

Here are some of the stars' reactions to the tragic news:

LeAnn Rimes: "Mindy and I both started our careers around the same time. We worked with a lot of the same people, so we ended up spending lots of time around one another. She was always so kind and very protective of me, like a big sis. My heart is broken that she's gone."

Carrie Underwood: "I grew up listening to Mindy McCready...so sad for her family tonight. Many prayers are going out to them..."

Clay Aiken: "I listened admiringly to Mindy McCready growing up. May she finally be at peace and lend her beautiful voice to heaven's."

Lady Antebellum's Hillary Scott: "My heart is breaking hearing of the loss of Mindy McCready. Pray for her 2 precious little boys...may God's peace & protection be on them!"

Jason Aldean: "Just heard about Mindy McCready. My thoughts and prayers are with her 2 boys and her family."

Big and Rich's John Rich: "Very sad to hear about Mindy McCready. When I was in Lonestar she was our label mate and we were friends. A tragic end to a talented life."

Wynona Judd: "Oh my! Mindy. Dear sweet girl. This is so sad. It just breaks my heart what addiction continues to take from this life. Addiction is a dis EASE and not a character flaw. When the pain becomes too much, it causes people to want that pain to stop. This is just so Unbelievable and so sad. God be with the family and those babies. Surround them with your grace & mercy. Sleep in Heavenly peace Mindy."

Martina McBride: "So sad."

Chely Wright: "Really really sad to learn the news about Mindy McCready. I will pray for her children and I hope that people are gentle with her memory."

Gretchen Peters: "So sad to hear about Mindy McCready. I met her in the first flush of her early career. This is a hard business. Sometimes success is poison."

3. Mark Hamill Reveals He's in Talks to Appear in New 'Star Wars'

Mark Hamill's new movie Sushi Girl hits DVD and Blu-ray this week, and while talking about the project, the Star Wars legend was more than happy to provide ETonline with an update on his involvement with the in-development Star Wars VII – and what he thinks of those planned spinoff movies…

"It's all very, very exciting and so unexpected," says Hamill. "I think that's the quality I like about it most – it's like getting a pair of pants out of the closet you haven't worn in three years and finding a $20 bill in the pocket. It's just so unexpected."

First off, will he appear in Star Wars VII? "They're talking to us," he reveals. "George [Lucas] wanted to know whether we'd be interested. He did say that if we didn't want to do it, they wouldn't cast another actor in our parts – they would write us out. … I can tell you right away that we haven't signed any contracts. We're in the stage where they want us to go in and meet with Michael Arndt, who is the writer, and Kathleen Kennedy, who is going to run Lucasfilm. Both have had meetings set that were postponed -- on their end, not mine. They're more busy than I am."

Hamill, 61, says he's intrigued about where the new trilogy could go but says he knows nothing about the storyline: "I probably learn more from Entertainment Tonight than I do directly from Lucasfilm – like for instance, when George told us he wanted to do the next trilogy, he didn't tell us it was going to be done for Disney. He saved that little nugget, and I read it online like anybody else."

As for his thoughts about the next trilogy's tone, "I said to George that I wanted to go back to the way it was, in the sense that ours was much more carefree and lighthearted and humorous – in my opinion, anyway. And another thing I'd want to make sure of is are we going to have the whole gang back? Is Carrie and Harrison and Billy Dee and Tony Daniels, everybody that's around from the original [returning]? I want to make sure that everybody's on board here, rather than just one. I guess I'll have to tune into your show to figure out who's on board."

In terms of where we'll pick up with Luke Skywalker in Star Wars VII, "I'm assuming, because I haven't talked to the writers, that these movies would be about our offspring -- like my character would be sort of in the Obi-Wan range [as] an influential character. … When I found out [while making the original trilogy] that ultimate good news/bad news joke – the good news is there's a real attractive, hot girl in the universe; the bad news is she's your sister – I thought, 'Well, I'm going to wind up like Sir Alec [Guinness]. I'm going to be a lonely old hermit living out in some kind of desert igloo with a couple of robots.'"

Hamill concludes of the next movie, "I hope they find the right balance of CGI with practical effects. I love props, I love models, miniatures, matte paintings -- I'm sort of old school. I think if you go too far in the direction of CGI it winds up looking like just a giant a video game, and that's unfortunate. … If they listen to me at all, it'll be, 'Lighten up and go retro with the way it looks.'"

As for those confirmed stand-alone Star Wars films, which may follow the adventures of a young Han Solo, Boba Fett and Yoda, Hamill observes, "That's really smart. Then you're more like James Bond pictures, where they come out and it's not an investment of a three-movie arc. … It's so rich, that [Star Wars] universe, in terms of quirkiness and oddball [nature]. We would talk about that [on the original film's set]. We'd go like, 'That little band that's playing in the Cantina, what's their story?! I mean, are they a traveling band? Are they the house band? Who's their manager?' They didn't have names when we first were talking about them. Now they're called, like, Sy Snootles – they come up with names down the road when they have to name toys."

So what spinoff movie would Mark Hamill like to see? "Oh, I don't know, set it on the Wookiee planet -- although that might be prohibitively expensive with that many Wookiees," he says with some resignation. After a little more thought, he muses, "That's what I would love. You pick the most insignificant little [character] – there's this little hawk-beaked character that's somewhere in Jabba's palace, I can't even remember what function he served -- but that's what I would think. You pick something that almost nobody remembers or knows about -- and then have a movie about him! You could probably put about 500 different character's names on a big, giant dart board, throw a dart, and say, 'Okay, wherever it lands we've got to make him the central character.'"
After a hearty laugh, Hamill adds, "I hope we don't overstay our welcome."

4. Nina Dobrev Reflects on Shocking 'Vampire Diaries' Death

Death has loomed large over Elena Gilbert since The Vampire Diaries pilot, but absolutely nothing will compare with the pain she's forced to endure now that her brother, Jeremy, has fallen victim to vampires.

The shocking death not only devastated fans, but the actors -- Steven McQueen included -- as well. And anyone assuming TVD finds a way to make the best of a bad situation is wrong. Dead wrong. According to Nina Dobrev things are about to get real dark for Elena, whose grief will make her unrecognizable to fans in the coming weeks.

ETonline: This season has been a thrill from the start. What's your feeling about season four?

Nina Dobrev: It's been really cool, especially because you always hear actors say doing a TV show for X amount of years can be boring and repetitive, but over the last four years, Elena has been changing and evolving and growing so much. Julie [Plec, executive producer] has done such an incredible job of keeping it fresh and exciting and making me excited to come to work every day. Especially this season -- and especially with the death of Jeremy. Between last week's episode and this week's, it's been very challenging for me as an actress, but very fulfilling. It's an emotional rollercoaster and I had to go to some dark places.

ETonline: What was your reaction to finding out Jeremy would be killed?

Dobrev: I think we were all shocked and surprised, but that's the show -- it's a vampire show, people have to die all the time. And for Elena, it was very important that she lose Jeremy for what she's about to go through. It becomes a big part of her journey. I know Steven was very bummed, but also excited because he had a lot to do leading up to it -- his character grew and became so strong. It's bittersweet but made for some amazing television.

ETonline: In many ways, Jeremy was the person who really kept Elena tethered to her humanity. Will this loss threaten to make Elena embrace the less desirable sides of vampirism?

Dobrev: Jeremy was the last person she had left, so it's very likely that Elena could go off the deep end now that she doesn't have the one thing that kept her human. Elena wants to protect the people she loves and saw this new-found strength as a way to protect everyone. But, in this case, she couldn't protect Jeremy and lost the only family member she had left. She won't take it lightly. It's going to destroy her.

ETonline: Jeremy was also one of the only remaining characters who touched everyone in Mystic Falls. Will his death, in some ways, reinforce the group?

Dobrev: They do come together, but everyone is sort of walking on pins and needles around Elena so they don't trigger something and send her into a psychotic break. They live in a mystical world, so just because Jeremy's dead, it doesn't mean he's really dead in her mind. So she's looking for any solution she can to bring him back -- Elena is basically mentally unstable, going a little crazy and everyone is trying to help.

ETonline: Obviously Elena still misses Jenna and Alaric, but I would imagine losing Jeremy has a much more profound and prolonged effect on her. True?

Dobrev: Losing Jeremy really, really, really changes Elena. Sometimes people recover from tragedy and sometimes they don't -- but it's a long journey for her. Elena's mourning peroid is much different than any I've ever seen depicted on TV before. She goes off the deep end and spirals downwards into a black hole of death and sadness and misery. I mean, your instinct is right when you asked if we'll see an Elena who embraces her vampire side to a different degree. It's an Elena we haven't seen before, and you'll be shocked, quite frankly. I was very surprised where the episodes take her because it's almost like she's a completely different person that you won't recognize to some degree.

5. Fergie Reveals: I'm Pregnant!

Congratulations are in order for Fergie and Josh Duhamel, as the couple announced this week that they're expecting their first child!

"Josh & Me & BABY makes three," she Tweeted, along with the hashtag #MyLovelyBabyBump

Fergie and Duhamel married on January 10, 2009, after five years of dating.

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FDA approves new targeted breast cancer drug


WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.


The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.


Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.


"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."


Cobleigh helped conduct the key studies of the drug at the Chicago facility.


The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.


The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.


Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.


FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.


Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.


FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer


Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.


Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.


Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.


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Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.


Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.


Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.


"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.


Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.


But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.


National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.


"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.


OPTIONS BULLS TARGET GAINS


The spending cuts, if they go ahead, could hit the defense industry particularly hard.


Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.


Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.


"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.


The stock ended up 0.6 percent at $88.12 on Friday.


If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.


General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.


EYES ON GDP DATA, APPLE


The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.


U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.


Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.


Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.


On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.


(Additional reporting by Doris Frankel; Editing by Kenneth Barry)



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Abe: Japan acting calmly in island dispute with China


WASHINGTON (Reuters) - Japanese Prime Minister Shinzo Abe on Friday said he told President Barack Obama in a meeting that Japan would act calmly in its row with China over tiny islands in the East China Sea claimed by both Asian countries.


"I explained that we have always been dealing with this issue ... in a calm manner," he said through a translator, while sitting next to Obama in the White House Oval Office.


"We will continue to do so and we have always done so," he said.


Tension has raised fears of an unintended military incident near the islands, known as the Senkaku in Japan and the Diaoyu in China. Washington says the islets fall under a U.S.-Japan security pact, but it is eager to avoid a clash in the region.


Abe said the existence of the Japan-U.S. alliance was a stabilizing factor in the area.


"We agreed that we would stay in close coordination with each other in dealing with such issues and other issues," he said.


Obama, in his remarks to reporters, said Japan was one of the United States' closest allies. He said the two men would discuss trade and other economic issues and agreed that their top priority was economic growth.


Obama declined to answer a reporter's question on whether they would discuss the Japanese yen.


Expectations for Abe's economic programs, especially monetary easing, have cut some 10 percent off the yen's value against the U.S. dollar since Abe took office, raising concern that Japan is weakening its currency to export its way out of recession.


Obama and Abe also discussed North Korea and agreed to cooperate at the United Nations over the issue. Abe said the two men also talked about additional sanctions against North Korea, which tested a nuclear bomb last week in defiance of U.N. resolutions.


(Editing by Vicki Allen)



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Dwayne Johnson Talks 'Snitch'

Dwayne Johnson is forced to drive for a ruthless drug cartel in the gritty action-thriller Snitch, in theaters today, and the towering star with a heart of gold tells ET, "I would go through heaven and hell to protect my child."

Pics: They Dated?! Surprising Celebrity Hookups

"At the heart of this film it is about family, and I would do anything to protect my family," says Johnson. "It's what we do as adults – we protect our children from harm, from danger."
At the center of the film is a serious showpiece, the edge-of-your-seat big rig chase, and we asked Johnson if he was able to drive the truck himself.

Flashing his trademark grin, he replied, "You bet your ass I know how to drive that big rig. I loved driving that. The big rig became a character in and of itself in this movie."

Snitch finds Johnson as a concerned father faced with a dramatic choice after his teenage son is wrongly accused of a drug distribution crime. With his boy facing a minimum prison sentence of 10 years, the desperate and determined Johnson makes a deal with the U.S. attorney to work as an undercover informant and infiltrate a dangerous drug cartel (whose key player is played by Benjamin Bratt). Willing to risk everything to free his son, can Johnson make it out alive? Susan Sarandon, Barry Pepper and Jon Bernthal also star.

Video: Johnson Talks 'G.I. Joe: Retaliation'

Johnson adds, "Because [the movie is based on a] true story, I wanted to make sure that all of the elements are preserved and respected."

Read More..

FDA approves new targeted breast cancer drug


WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.


The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.


Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.


"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."


Cobleigh helped conduct the key studies of the drug at the Chicago facility.


The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.


The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.


Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.


FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.


Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.


FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug.


Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.


Kadcyla was co-developed by South San Francisco-based Genentech and ImmunoGen Inc., of Waltham, Mass. ImmunoGen developed the technology that binds the drug ingredients together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.


Shares of ImmunoGen Inc. slipped 8 cents to $14.22 in afternoon trading. They have traded in a 52-wek range of $10.85 to $18.10.


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